how many departments are there in a company

How Many Departments are There in A Thriving Company?

(Last Updated On: April 16, 2022)

How many departments are there in a company? Many small businesses don’t survive, especially when there’s an economic downturn. However, small businesses can fail for several reasons, including not having the right people in the right positions. In order to start a business, the business owner needs to fill up some prerequisites.

However, to have the people in the right roles, you’ll need several departments responsible for particular organizational functions. While your small business may not need every department a large corporation has, a few are necessary to build a solid foundation. In starting up a business planning you need to have these departments.

How many departments are there in a company?

How many departments are there in a company? Here’s a list of every department your small business needs. 

1. Administration

Every business needs someone that’s in charge of all the other departments. Professionals will influence daily workflow and operations at the administration level while setting up an optimal infrastructure to ensure operational success. The administration department may also oversee workforce management and the implementation of new initiatives while serving as the prime liaison between you as the business owner and all other departments within the company. 

Administration may also be responsible for maintaining organizational structure and compliance, depending on the nature of your business. No matter what specific tasks they’re in charge of, this department should be able to manage company files and connect departments easily. 

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2. Marketing

Successful small business marketing strategies maintain a perfect marketing department. If you want to attract customers, you need a marketing department. Of course, you can also outsource your marketing needs, but it may be necessary to have a few people in-house to manage quick-turnaround projects, such as launching a new product or handling social media.

A marketing department can help you brand your business to help you stick out from the crowd in terms of competition. Marketing professionals also use extensive data to learn about your customers and find strategies to help customers find you online or in-store.

The marketing department can help you generate leads while analyzing those leads to ensure you’re reaching the right people at the right time. They can also help find the suitable types of advertising to invest in to ensure you’re getting the most significant return on your investment. 

3. Finances

Every business has its finance, and a finance department can help you manage everything from daily business costs and payroll to quarterly and annual taxes, with the business structure for a small business. Your small business needs someone who knows where your money is going at all times to ensure you can pay your employees and ensure your business thrives. 

The financial department can ensure your employees are paid correctly and on time, help you purchase equipment for the business, and help you keep the books to make tax season easier. 

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4. Production

The production department supplies your service or product to your customers, as a part of the best business structure for a small business. This department needs adequately trained employees to follow exact procedures to create quality products. If they complete their work poorly, you can lose customers or damage your reputation.  If you want to succeed, you have to keep the best organizational structure for s small business.

5. Sales

The sales department works in tandem with marketing to help you sell products and services to more people. If your marketing department is doing its job, it’s generating leads. Sales professionals can then qualify and vet those leads. The sales department will make a more personal connection to customers and help convince them to buy a product or service. 

Sales professionals need customer service skills, but they may not be customer service representatives. Depending on your business, your salespeople may be responsible for customer service for their own customers, but you may also choose to have a customer service department. 

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6. Customer Service

When your customers have a complaint, they must be able to get their problems solved as soon as possible. Without a customer service department, your customers will have no one to voice their opinions too, which can cause poor reviews and damage your reputation. 

Customer service representatives can solve complex customer problems and satisfy your customers. However, your customer service department must be trained on your policies, especially when it comes to returns and shipping. Because they’re responsible for connecting with customers who are typically unhappy with the product or service, these individuals must be able to maintain their composure and change the way an unsatisfied customer feels about your business. 

7. Human Resources

The human resources department is responsible for employee recruiting and onboarding, hiring, and training. Additionally, a team of HR professionals can help keep your employees happy while ensuring your business is following all local and federal employment laws. They can also manage employee expectations and solve disputes between employees and departments to make the work environment healthy for everyone. Not to mention, the HR department is known for coming up with creative ways to build and grow your company culture. 

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Business Organizational Structure

Small businesses have fewer resources than large corporations, but that doesn’t mean they can’t have a solid structure. Having a structure can help your employees understand their roles and be able to focus on achieving those goals. While it’s common for small business employees to wear multiple hats, this can cause fatigue, stress, and employee burnout. 

Creating a business structure can help you focus on your business’s essential elements to survive and thrive in a competitive marketplace. Remember, it’s not enough to have one person in each department, and in some cases, you might have to outsource. For example, you can have a small marketing team that consists of a marketing director, writer, designer, and web developer and outsource key marketing initiatives like search engine optimization. 

You should always consider the roles that will need to exist within each department. For example, you might need to have someone responsible for employee recruiting and another person in charge of onboarding and training, especially as your business grows. 

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Final Thoughts

As time goes on and your company grows, you may need to hire more professionals and implement new departments. For example, you may already have a marketing department, but eventually, you might need a digital marketing and content department to help manage all the necessary SEO and advertising duties. 

While your organizational structure should help you build a solid business foundation, don’t make it too strict. You’ll need to grow your structure over time, so it should be flexible enough to allow for continued growth. Hope you have learned, how many departments are there in a company with their functionality.

Author: Matt Casadona

Matt Casadona has a Bachelor of Science in Business Administration, with a concentration in Marketing and a minor in Psychology. Matt is passionate about marketing and business strategy and enjoys San Diego life, traveling, and music. 

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